Mega caps pull back, equal weight S&P rises

Lionel8383
2023-06-08

Wednesday's trading session was somehow different, as the strong mega caps that were outperforming for most of last month suffered losses while the others played catch up.

Mega caps suffered a loss on Wednesday, stocks like Amazon.com (AMZN 121.23, -5.38, -4.3%), Alphabet (GOOG 122.94, -4.97, -3.9%), Microsoft (MSFT 323.38, -10.30, -3.1%), and NVIDIA (NVDA 374.81, -11.68, -3.0%) all saw large declines today, falling prone to profit taking after a big run and to some valuation angst. Apple (AAPL 177.82, -1.39, -0.8%) also logged a loss for the session. 

This resulted in the weighted S&P 500 to lose 0.38% on Wednesday. On the other hand, the equal weighted S&P 500 actually gained 0.74%, showing broader market relative strength.

S&P 500 loss 0.38%

Equal weight S&P 500 gained 0.74%

Russell 2000 gained 1.59%

The outstanding performer was the Russell 2000 ETF gaining 1.59%, boosted by energy and regional bank components. The SPDR S&P Regional Banking ETF (KRE) rose 3.3%. The S&P 500 energy sector (+2.7%) led its peers by a wide margin.

Other top performers included the cyclical materials (+1.2%) and industrials (+1.6%) sectors.

Lagging mega cap components weighed down the communication services (-1.9%), information technology (-1.6%), and consumer discretionary (-0.9%) sectors.

Energy & Real Estate outperformed on Wednesday 

 Is this the change in market breath, as mid caps and small caps finally play catch up with the leading mega caps, to allow the market to become "healthy" again?

@TigerStars 

$Amazon.com(AMZN)$ 

$Alphabet(GOOG)$ 

$Microsoft(MSFT)$ 

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Comment（9）

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  • wigglyz
    ·2023-06-14
    TOP

    Assuming MSFT's purchase of Activision-Blizzard ultimately goes through, is it a good idea now to buy Activision at 80 when MSFT's contract purchase price of Activision is 95? Your thoughts please-

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    • Lionel8383: 
      I have not done a valuation for Activision, so unless its currently trading under valued, then of course $80 is a good price. Just need to be prepared in the outcome it eventually fails and where is the support that the market would price it.
      2023-06-14
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  • zinglee
    ·2023-06-14
    TOP

    Where will msft be tomorrow? Probably below $300

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    • Lionel8383: 
      That will be the perfect opportunity to add more shares, as they are slightly under valued right now. The current price is only a hold.
      2023-06-14
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  • Wilsonx
    ·2023-06-08
    Great ariticle, would you like to share it?
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  • cheerzy
    ·2023-06-14

    MSFT is a Massive Bubble. See you at $30

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  • bubblyx
    ·2023-06-14

    msft will never go down again. Please Buy

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  • nimbly
    ·2023-06-14

    msft 350 looking good in the near future

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  • GggSlimeR
    ·2023-06-08
    Tha nks & Do not like my comment
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